Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if KLA CORP (NASDAQ:KLAC) is suited for quality investing. Investors should of course do their own research, but we spotted KLA CORP showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.
What matters for quality investors.
Over the past 5 years, KLA CORP has experienced impressive revenue growth, with 21.06% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
The ROIC excluding cash and goodwill of KLA CORP stands at 82.03%, reflecting the company's strong financial management and profitability. This metric underscores its ability to generate favorable returns on the capital invested in its core operations.
With a favorable Debt/Free Cash Flow Ratio of 1.83, KLA CORP showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
With a favorable Profit Quality (5-year) ratio of 101.0%, KLA CORP showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
KLA CORP has consistently achieved strong EBIT growth over the past 5 years, with a 22.1% increase. This underscores the company's effective management of its operating income and suggests a positive outlook for future profitability.
With EBIT 5-year growth outpacing its Revenue 5-year growth, KLA CORP showcases its effective cost management and enhanced operational performance. This suggests the company's ability to generate higher earnings from its revenue streams.
What else is there to say on the fundamentals of NASDAQ:KLAC?
ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.
KLAC gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 105 industry peers in the Semiconductors & Semiconductor Equipment industry. KLAC has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. KLAC has a correct valuation and a medium growth rate. With these ratings, KLAC could be worth investigating further for quality investing!.
This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.